For the first time in recorded history, the price of oil in the US has dropped below $0 per barrel. What does this mean for our country?
In a nutshell, it means that some oil producers in the US are going to go bankrupt – and China will benefit.
The Facts
The reason that the May price dropped below $0 is because there is no demand. Not enough people are traveling and not enough planes are flying to increase demand. And because the domestic producers didn’t slow down soon enough there is a lot of oil and not enough storage.
In other words, storage is more valuable than oil in May. What that means for America is that our oil producers are going to be paying buyers to take the oil and that could mean bankruptcy for some producers.
According to The Washington Examiner:
“The paper market contracts are expiring, and the physical market is running out of places to put the crude oil oversupply, while demand remains on lockdown and could deteriorate further as recovery remains elusive,” said Frank Verrastro, senior vice president of the energy and national security program at the Center for Strategic and International Studies. “The combination is crushing oil prices.”
Holders of the paper contracts for West Texas crude must take delivery of the oil and with no storage available the buyers are just not there. The producers then have to pay people or companies with storage space to take the oil with the closing price for the May contracts at more than -$37/barrel.
President Trump announced that he is filling up the strategic petroleum reserves with 75 million barrels of oil. The storage facilities are in Texas and can hold more than 700 million barrels of oil.
What the sub-zero dip means for American consumers is that gas will be cheaper, but we will still not be traveling much in May.
China wins big
The oil crash is a big win for China, which imports almost all of its oil and gas. The Chinese government has been filling the country’s strategic reserves since the oil market started to crash in March.
Even though the headline sounds apocalyptic, as Jim Cramer said, “No, oil is not worth nothing!” In fact, the June oil futures are trading at $21/barrel. As the economies in each of the states start to open, and people start to travel more, the demand for oil will grow as will the price per barrel.
As Stuart Varney said, “we can’t enjoy cheap gas until we start driving again.”
Read the whole story here.
Watch Stuart Varney explain the dangers to our oil industry and the advantage China gains due to low oil prices:
214 Responses
Great tremendous things here. I¡¦m very glad to see your post. Thank you so much and i’m taking a look forward to contact you. Will you kindly drop me a e-mail?
whoah this weblog is excellent i like reading your posts. Stay up the good paintings! You realize, many persons are searching round for this info, you could aid them greatly.
seksi chat, chat, seuraa jokaiselle, panotreffit
This design is steller! You most certainly know how to keep a reader entertained. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Great job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!
I am usually to blogging and i actually respect your content. The article has really peaks my interest. I am going to bookmark your website and maintain checking for brand new information.
I must point out my admiration for your kind-heartedness for individuals who really want help with this one question. Your very own dedication to getting the solution all over became really effective and have in every case empowered women just like me to get to their dreams. This useful instruction means a great deal to me and extremely more to my peers. Thank you; from all of us.
Thanks for revealing your ideas listed here. The other point is that if a problem comes up with a computer system motherboard, people today should not have some risk of repairing that themselves for if it is not done properly it can lead to irreparable damage to the complete laptop. Most commonly it is safe just to approach your dealer of that laptop for the repair of motherboard. They will have technicians that have an competence in dealing with laptop computer motherboard complications and can make the right prognosis and carry out repairs.
It’s truly a nice and helpful piece of info. I am happy that you shared this useful information with us. Please keep us informed like this. Thanks for sharing.
My spouse and I absolutely love your blog and find almost all of your post’s to be what precisely I’m looking for. Does one offer guest writers to write content for yourself? I wouldn’t mind publishing a post or elaborating on a few of the subjects you write related to here. Again, awesome site!
Get help to stop drinking. Helping women quit drinking alcohol. Coach Mary Wagstaff. Feel better, mind, body and soul. Mindfulness based coaching and alcohol recovery. Yoga for recovery.
Wow! This can be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Actually Fantastic. I’m also an expert in this topic so I can understand your hard work.
Get help to stop drinking. Helping women quit drinking alcohol. Coach Mary Wagstaff. Feel better, mind, body and soul. Mindfulness based coaching and alcohol recovery. Yoga for recovery.
Heya i am for the first time here. I came across this board and I find It truly useful & it helped me out a lot. I hope to give something back and aid others like you helped me.
Wow! This blog looks exactly like my old one! It’s on a totally different topic but it has pretty much the same page layout and design. Great choice of colors!
above ground storm shelters for sale near me cheap storm shelter above ground storm shelters in ground storm shelters
Wonderful post however , I was wanting to know if you could write a litte more on this topic? I’d be very thankful if you could elaborate a little bit further. Appreciate it!
I like the valuable information you provide in your articles. I’ll bookmark your weblog and check again here frequently. I’m quite sure I will learn lots of new stuff right here! Good luck for the next!
Great – I should definitely pronounce, impressed with your site. I had no trouble navigating through all tabs and related info ended up being truly simple to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your customer to communicate. Nice task.
you’re actually a just right webmaster. The site loading velocity is incredible. It seems that you are doing any distinctive trick. Furthermore, The contents are masterwork. you have performed a excellent process in this matter!
diy kids craftdiy kids kids craft
Wow! This can be one particular of the most beneficial blogs We have ever arrive across on this subject. Actually Great. I am also an expert in this topic therefore I can understand your hard work.
I haven’t checked in here for a while because I thought it was getting boring, but the last few posts are good quality so I guess I will add you back to my daily bloglist. You deserve it my friend 🙂
Good web site! I really love how it is simple on my eyes and the data are well written. I’m wondering how I could be notified whenever a new post has been made. I have subscribed to your RSS feed which must do the trick! Have a nice day!
Fascinating blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog shine. Please let me know where you got your design. Bless you
philippine mushroom
This is very interesting, You are a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your excellent post. Also, I’ve shared your website in my social networks!
Xvideos Travestis
video production Tampa videographer Tampa Video Production Florida Tampa Video product
Thank you for sharing excellent informations. Your web site is so cool. I am impressed by the details that you’ve on this site. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my pal, ROCK! I found just the info I already searched everywhere and just could not come across. What an ideal web-site.
Thanks for the helpful content. It is also my belief that mesothelioma has an extremely long latency time, which means that indication of the disease would possibly not emerge until finally 30 to 50 years after the initial exposure to mesothelioma. Pleural mesothelioma, which can be the most common sort and is affecting the area within the lungs, could cause shortness of breath, torso pains, including a persistent cough, which may bring about coughing up blood.
excellent points altogether, you simply gained a new reader. What would you suggest about your post that you made a few days ago? Any positive?
I’ve been absent for some time, but now I remember why I used to love this blog. Thank you, I will try and check back more often. How frequently you update your site?
Do you mind if I quote a few of your posts as long as I provide credit and sources back to your blog? My website is in the very same niche as yours and my users would definitely benefit from some of the information you present here. Please let me know if this ok with you. Thank you!
This website is mostly a walk-via for all the information you needed about this and didnt know who to ask. Glimpse right here, and also youll undoubtedly discover it.
I do consider all the concepts you’ve introduced for your post. They are very convincing and can definitely work. Still, the posts are too quick for newbies. May just you please prolong them a little from next time? Thank you for the post.
hello!,I like your writing very much! share we communicate more about your article on AOL? I require an expert on this area to solve my problem. Maybe that’s you! Looking forward to see you.
Mr fog Max Mr fog Max PRO Air Bar Disposable Cali Air Disposable
Do you have a spam problem on this site; I also am a blogger, and I was wondering your situation; many of us have developed some nice practices and we are looking to trade techniques with others, please shoot me an email if interested.
My brother recommended I might like this blog. He was totally right. This post actually made my day. You can not imagine just how much time I had spent for this information! Thanks!
I’d should verify with you here. Which is not one thing I often do! I take pleasure in reading a post that may make people think. Additionally, thanks for allowing me to comment!